Allcargo Logistics stock rises 3 pc after Gati deal

New Delhi, Dec 6 () Shares of Allcargo Logistics on Friday rose 3 per cent after the company said it will acquire around 44 per cent stake in Gati for nearly Rs 416 crore, marking its foray into the express logistics market.

The scrip gained 3.03 per cent to close at Rs 97 on the BSE. During the day, it jumped 5 per cent to Rs 98.90.

At the NSE, it climbed 2.54 per cent to close at Rs 96.60.

Shares of Gati, however, fell 4.62 per cent to close at Rs 62.95 on the BSE, while on the NSE, it declined 4.69 per cent to Rs 62.95.

Under the deal, Allcargo will first buy over 1.03 crore shares and subscribe to a preferential issue of over 1.33 crore shares (collectively 18 per cent shares) held by promoters and promoter group of Gati, including Mahendra Kumar Agarwal, Mahendra Investment Advisors and TCI Finance and also Gati, at Rs 75 a share.

Allcargo will then make an open offer to buy another 3.17 crore shares, representing 26 per cent of the paid-up voting equity share capital (post-preferential issue and vesting of stock options) from the retail shareholders of Gati at Rs 75 a share, taking the total deal value to around Rs 416 crore, Chairman Shashi Kiran Shetty said.

With Gati under its fold, Allcargo can offer a range of logistics services, including multimodal transport, container freight stations/inland container depots, projects and engineering solutions, warehousing, distribution, contract logistics and logistics parks. SUM ANU ANU

(This story has not been edited by Business Insider and is auto-generated from a syndicated feed we subscribe to.)

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